I am looking at buying a 6plex, 270,000, I have got great credit and cash for the 20% down, who should I use a bank or mortgage company? Also would you use your cash for the down payment or use some of a home equity loan ? I am looking at this for income not to flip. Thanks
To me, the source is irrelevant. It’s all about who will give you the better deal.
Go to your bank and give them a shot, then go to a mortgage broker and see what they can rustle up for you. A mortgage broker will probably have more options, but you sound like you’ll qualify for a standard deal, so maybe “drinking from the well” (that is, going to the bank directly) is your best option.
I’d use cash on hand for the down payment if you don’t need it. You can always get the cash back from the HELOC if you need to, but you won’t pay interest on the loan in the meantime.
Get a quote from both. As a mortgage broker, if I have somebody else’s deal in front of me I’m going to do all I can to beat it. I’m sure you’ll find that with most of us.
If statistics are anything to rely on, the bulk of all loans orginated in this country are done by brokers (a glowing testament that the wholesale model delivers more borrower value then retail).
As one that plays both sides of the fence (mortgage banker & broker), I find myself actiing in the latter capacity more often then the former.
Regards,
Scott Miller